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ABSTRACT

Islamic insurance is a substitute of conventional insurance. It is an option for people whose religious belief has discouraged them to patronize risk management products that are characterized with elements of uncertainty, interest rate and other non-religious complied principles. The study, however, aims at exploring the factors influencing Islamic Insurance (Takaful) services consumption in Kano Metropolis, Nigeria.

This is to examine a given research problem by answering these questions which are: To what extent does building public awareness of Takaful services have significant effect on Takaful services consumption? To what extent does the level of public attitude have significant effect on the Takaful services consumption? To what extent does the level of public perception have significant effect on the Takaful services consumption?

To what extent does the level of public trust and confidence reposed on Takaful operators have significant effect on Takaful services consumption? And finally, how does the level of Takaful operators’ capacity and competences have significant effect on Takaful services consumption? The five (5) Hypotheses formulated and the research objectives are in line with the research problem’ questions raised. The study’s design is survey research in which the exploratory method is employed using questionnaire and unstructured observation as the means for collecting primary data of the study.

The research’s sample size is 411 where 384 represent actual and potential customers and 27 are the staff/agents of Takaful operators in Kano Metropolis. The study has analyzed the data using chi-square statistical tool. The findings of the study indicate that all the five (5) Null Hypothesis formulated are rejected.

The results have discovered that the independent variables: public awareness of Takaful services, public attitude, public perception, public trust and confidence upon Takaful operators, capacity and competences of Takaful operators; have significant effect on the dependent variable (Takaful services consumption) in Kano Metropolis.

It is therefore recommended: that all the stakeholders in Islamic insurance (Takaful) businesses shall put hands together and harness the available resources to promote the business; that the stakeholders shall embark on the attitudinal change campaign aims at making public to understand the need for purchasing Takaful services as a means of employing risk management and that the existing operators shall have to do a lot in creating a unique identity which can make the Takaful so different from conventional insurance so as to establish favorable perception of the subject matter; that there shall be needs for creating business trust and confidence between the public and the operators; and the stakeholders in the industry shall provide the needed capital investments which can enable the Takaful business to be well established and be capable in winning more customers.

This would make the Takaful operators capacity to be very strong and strong capital base can enhance the competences of the players and their competitiveness in the industry.